Although no state or federal law requires an employer to have an employee handbook, there are many policies and procedures the law does require employers to communicate to employees. Many employers use an employee handbook to describe the employer’s history, mission, values, policies, procedures, and employee benefits. A well-written employee handbook also answers many routine questions employees may have and avoids using additional time and resources of employees, the human resources (HR) department, or managers in answering those questions.

Employers often require each employee to sign a written acknowledgment of receiving the employee handbook—but must be careful not to have the handbook construed as an employment agreement, which might change the employee’s status from an at-will employee who can be fired or terminated at will to an employee who can only be fired or terminated for cause.

Employers must also be careful to avoid overly broad statements in the employee handbook that restrict the ability of employees to discuss wages and other terms and conditions of employment—including criticisms of the employer—which are known as protected, concerted activities.

In Montana, while there is no state or federal law mandating that employers provide an employee handbook, it is a common practice for employers to distribute one to effectively communicate company policies, procedures, and employee benefits. The handbook typically includes information about the company's history, mission, values, and answers to frequently asked questions, which can save time for HR and management. Employers in Montana may ask employees to acknowledge receipt of the handbook, but they must be cautious not to imply that the handbook is an employment contract, which could alter the at-will employment relationship unless the employer intends to create a contract. Montana is unique in that it is the only state where the default rule is that employees are not at-will after the completion of an initial probationary period, as per the Montana Wrongful Discharge From Employment Act (MWDEA). Therefore, the language in the handbook must be carefully crafted to avoid inadvertently creating contractual obligations. Additionally, employers must ensure that the handbook does not contain language that could be interpreted as restricting employees from engaging in protected, concerted activities, such as discussing wages, working conditions, or criticisms of the employer, as these are protected under the National Labor Relations Act (NLRA).